Uptrend Seen On Bursa Malaysia Next Week On Stock Rotation Factor
By Rosemarie Khoo Mohd Sani
KUALA LUMPUR, June 27 (Bernama) -- Bursa Malaysia is expected to trade higher next week as investors continue rotating from high-growth technology stocks into blue-chip and defensive sectors amid a more cautious global market environment.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said following the strong outperformance of technology stocks in recent weeks, investors are likely to rebalance their portfolios towards financials, healthcare, consumer-related and other defensive counters that offer more resilient earnings and attractive dividend yields.
“The FBM KLCI’s decline below the 1,680 level this week is also likely to attract bargain hunting, particularly in fundamentally strong blue-chip stocks that have become more attractively valued following the recent pullback,” he told Bernama.
He said this moderation in technology leadership could also benefit emerging markets, including Malaysia, as investors broaden their exposure beyond the United States mega-cap technology sector.
“We also see the potential for foreign investors to turn net buyers of Malaysian equities, supported by the FBM KLCI’s attractive valuation relative to regional peers, resilient domestic economic fundamentals, improving corporate earnings prospects and renewed interest in high-quality blue-chip and defensive companies,” Mohd Sedek added.
For the week just ended, Bursa Malaysia were mostly lower on profit-taking as investors stayed cautious amid a lack of positive catalysts.
On a Friday-to-Friday basis, the key index dipped 44.29 points to 1,667.74 from 1,712.03 a week earlier.
On the index board, the FBM Emas Index fell 316.03 points to 12,3654.02, the FBMT 100 Index lost 318.03 points to 12,201.59, and the FBM Emas Shariah Index sank 317.36 points to 12,241.30.
The FBM Mid 70 Index erased 436.39 points to 17,726.19 and the FBM ACE Index gave up 47.22 points to 4,745.30.
By sector, the Plantation Index was up 9.76 points to 8,882.98, the Energy Index dropped 20.37 points to 745.90, the Financial Services Index tumbled 541.46 points to 19,663.12, and the Industrial Products and Services Index trimmed 10.98 points to 179.59.
Weekly turnover decreased to 15.54 billion units worth RM13.11 billion, from 16.92 billion units valued at RM14.62 billion a week earlier.
The Main Market volume narrowed to 7.78 billion units valued at RM11.58 billion against 9.73 billion units worth RM13.06 billion previously.
Warrants turnover expanded to 5.15 billion units worth RM628.56 million versus 4.18 billion units valued at RM538.65 million last week.
The ACE Market volume eased to 2.59 billion units valued at RM899.90 million compared with 2.99 billion units worth RM1.01 billion in the previous week.
-- BERNAMA